Strategic Storage Growth Trust Increases 2Q17 NOI By 44 Percent, Year-Over-Year
Strategic Storage Growth Trust Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the second quarter of 2017.
“Our second quarter results represent our fifth consecutive quarter of double-digit growth in same-store revenues and NOI. This trend is a testament to our investment strategy of buying growth-oriented assets and driving performance,” said H. Michael Schwartz, chairman and chief executive officer of Strategic Storage Growth Trust. “We also continued to expand our portfolio during the quarter with the acquisition of two existing properties in Asheville, NC, as well as a lease-up property in Sarasota, FL.”
Second Quarter 2017 Highlights
• Increased same-store revenues and NOI by 15.6 percent and 44.1 percent, respectively, compared to the same period in 2016.
• Increased modified funds from operations to approximately $0.7 million compared to a loss of approximately $0.6 million in same period in 2016.
• Increased same-store average physical occupancy to 94.8 percent, compared to 89.3 percent during the same period in 2016.
• Increased same-store annualized rent per occupied square foot by approximately 9.8 percent to $12.11, compared to $11.03 for the same period in 2016.
• Increased quarterly cash flows from operations to approximately $1.4 million from cash used in operations of approximately $0.2 million compared to the same period in 2016.
• On May 5, 2017, SSGT registered up to an additional $115.6 million in shares under its distribution reinvestment plan. As of June 30, 2017, the company had sold approximately 32,000 Class A shares and 11,000 Class T shares for approximately $0.4 million and $0.1 million, respectively, in its DRP offering.
• During the second quarter, SSGT agreed to purchase four existing and development properties for a combined $44 million. The properties, which are located in Arizona, Nevada, California, and Florida, are expected to close between the fourth quarter of 2017 and the second quarter of 2018.
Strategic Storage Growth Trust is sponsored by Smartstop Asset Management and focuses on the acquisition, development, redevelopment and lease-up of self storage properties. The company’s portfolio currently consists of 20 operating self storage facilities and three development properties. The REIT went effective in January 2015 and raised more than $279 million in investor equity before closing in March 2017.
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